What is Broadband Cap?
A broadband cap is an upper limit to the amount of data that can be transmitted over the Internet, which is imposed by an Internet Service Provider (ISP) over a period of time (usually one month). A broadband cap limits the transmission of data over the Internet connection and is used whenever a channel shared by several users is overloaded.
A broadband cap can also be referred to as a bandwidth cap, broadband data cap or bit cap.
Although broadband caps are often so big that most users never reach them, services like streaming video, file sharing and internet radio are often able to push users over the limit. Those who use their broadband connections at high rates for a long time can impair the service of others. As a result, companies enforcing broadband caps are being accused of helping the cable TV channels that compete with streaming multimedia services like Netflix by restricting their customers' unlimited access to streaming data. An alternative to broadband caps is usage-based billing, in which customers sign up for a certain service level and are charged more if they exceed certain limits.